FISHING (SORT OF)

MIDDAY TRADE

Equity markets are trading near the flat line finally digesting some of the recent gains. SPX -.33, NAZ -.65 and DJIA +6.

Strongest sectors- gaming, airlines, defense, brokers and real estate while metals, ags, semis, trannies and homies lag.

NYSE- 200 net winners;

NAZ- 25 net winners;

NDX- 46 GREEN;

SPX- 220 GREEN;

VIX- down a bit at 23.35.

TRIN- 1.17 with up and down volume about equal.

GOLD down $3 at 1017 while silver is unch at 17.4.

Dollar down a tad at 76.41 while the EURO is up a bit at 1.4735.

Market feels like it could do just about anything today as the bulls seem to have a little less conviction today- although the boys could show in the late PM and drive us higher- that has been the usual movie.

EARLY LOOK (VERY)

Its about 1.00 AM eastern and the futures are actually trading lower- first time in quite a while that red appears on the screen.

Anyhow- some links:

BESPOKE on the stocks above their 200 day SMA's and how far high yield spreads have fallen- good for the high yield longs ;

The Quant with more on the stretch;

Jimmy Rogers expecting some kind of crisis;

US Credit card defaults - moving on up;

TXT on the GS conviction BUY list and another list;

Dougie continues to take the trades from the short side;

Another Wall Street casualty;

RIP Mary Travers;

THE CLOSE

Market just has one direction for now and its pretty tough to buy at these RSI 2 levels- 100 across the board on major indexes.

Strong sectors today - nat gas, Australia, reits, banks, internets, homies and oil service- laggards were drugs, gaming, semis, ags and biotech.

NYSE- 1940 net winners.

NAZ- 1000 net winners.

NDX- 78 GREEN.

SPX- 407 GREEN.

VIX- up 1% at 23.69 while VXX was down a hair.

Gold crude and nat gas all up on the day while ags were down- as was the dollar-

Market is over bought - and no one knows when the correction will come- it will come - and most will be buying that dip and then selling probably causing a nice correction-

LATE MORNING LOOK

Equity markets continue to defy gravity and are higher once again- with the SPX +6, NAZ +8 and the DJIA +27.

Strong sectors- nat gas, gaming, banks, metals, airlines and internets while semis, ags, trannies and drugs lag.

NYSE- 1350 net green;

NAZ- 600 net green;

NDX- 50 GREEN;

SPX- 315 GREEN;

VIX- down 2% at 23.2 and about 8% below the SMA 10.

TRIN- .66 with up volume about 4x the down.

Gold at 1017.

Silver at 17.34.

Dollar down a hair at 76.61 while the EURO is up a hair at 1.469.

RSI 2 levels - about 98 on most major indexes.

Not much to say except the markets are way overbought but refuse to pull back- probably a close near the highs- also gold now looking very good for a move up to 1050.

CLOSING LEVELS

Markets closed higher but there was some selling in the last hour as we did not close at the best levels of the day- SPX +3.25, NAZ +11 and the DJIA +56.

Strong sectors included gaming, metals, crude, ags, silver, homies and real estate while drugs, biotech, brokers and retail lagged.

NYSE- 1200 net winners;

NAZ- 470 net winners;

NDX- 54 GREEN;

SPX 300 GREEN;

VIX- down 2% and over sold at 23.35.

TRIN- meaningless at 1.66 with up volume at 1.5x the down and heavy with 1.5 B shares traded.

Silver up almost 3% at 17+ and gold up a hair at $1009- looks like it could move higher if the dollar continues its downward way- DX was down .32% at 76.715 while the EURO was up at 1.467.

RSI 2 levels well above over bought levels between 95 and 100 on most major indexes.

Looking for a little pullback here as some will insist on profits to pay some bills-

MY TAKE

Choppy and sloppy this morning with the Naz out performing the SPX - NAZ +3 SPX -2 and DJIA -5.

Strongest sectors- gaming, nat gas, metals, homies, ags and junk bonds while drugs, oil service, retail and real estate lags.

NYSE- 360 net green;

NAZ- flat internals;

NDX- 48 GREEN;

SPX- 215 GREEN;

VIX- flat at 23.85;

TRIN- 1.51- up and down volume about equal-

Metal stocks trading higher despite the flat spot gold- silver up near $17 while nat gas continues to out perform crude.

Many stocks in the key sector area trading red including C SLB LLY AMGN COP JPM PFE HD CVX VZ XOM WMT MON PG BAC KO MMM GS UPS UTX and they are all down from the open.

RSI 2 levels - high 70's on the SPX and mid 90's on the outperforming NAZ/NDX.

RUT also a winning sector with a reading of 94.

I suspect we get the usual afternoon ramp and I am sitting on my hands waiting for a little PM fireworks.

MORNING CHECKS

Markets opened lower on the heels of weak markets over seas but have been steadily climbing higher from the open. SPX -3, NAZ -4 and DJIA -24.

Strongest sectors- gaming, biotech, drugs, brokers and energy while metals, banks, homies, reits, internets and retail lag.

NYSE- 575 net losers;

NAZ- 500 net losers;

NDX- 45 GREEN;

SPX- 185 GREEN;

VIX- up 3% at 24.9 and at/near the SMA 10.

TRIN- 1.32 with down volume about 2x the up.

RSI 2 levels as follows:

SPX 61;

NDX 80;

DJIA 50;

RUT 67;

Strength in tech and drugs - as the markets shake off the opening weakness- lets see if it closes green - I suspect it does.